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Crypto Valley Unveils Blockchain Focused Fund Aimed at African Startups

Crypto Valley Venture Capital (CV VC), located in Switzerland, has announced the formation of a fund to help blockchain firms in Africa while they are in their early stages of development. A total of one hundred new businesses will each get between ten and fifty million dollars from the structure as an investment over the following four years. It is anticipated that the majority would originate in South Africa, Nigeria, Kenya, Ghana, and Egypt.

To this day, CV VC has provided funding for 12 different teams. Specifically, Leading House Africa from Nigeria, which will enable land to be recorded in a distributed ledger, and Mazzuma from Ghana, a mobile payment platform. Both of these companies are based in Nigeria. According to a research by CV VC and Standard Bank, the yearly growth rate of financing for blockchain firms on the continent exceeded VC investments overall by 11 times in the first quarter. This information was gleaned from the report.

In the period of January to March, blockchain businesses in the area raised $91 million, representing a 1668 percent increase over the same time in 2021. In the second quarter, the Nigerian/Kenyan company Mara, the Congolese company Jambo, and the Nigerian company Afriex together raised $63 million in finance. At the end of the year 2021, the proportion of African blockchain companies in garnering investments on a worldwide scale was 0.5 percent.

Gideon Greaves, managing director of VC Africa, emphasized in an interview with Cointelegraph that the absence of antiquated infrastructure in the region provides blockchain startups with a competitive advantage due to the ability to “fill the void” with cutting-edge technologies that are both quick to implement and innovative.

The top management predicts that during the next five years, the region will occupy the lead position in terms of earnings generated by venture capital firms that have blockchain as their primary area of concentration. According to the findings of the report’s researchers, the industry will see the emergence of unicorns within the next two to three years. You may remember that in 2019, Jack Dorsey, who had previously served as the CEO of Twitter, said that Africa will decide the fate of bitcoin. Earlier KuCoin researchers have projected that there would be a rise of 1386.7 percent in the average number of monthly cryptocurrency transactions in the area in the year 2021.

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